BILL ANALYSIS Ó AB 166 Page 1 Date of Hearing: April 22, 2015 ASSEMBLY COMMITTEE ON APPROPRIATIONS Jimmy Gomez, Chair AB 166 (Beth Gaines) - As Amended March 11, 2015 ----------------------------------------------------------------- |Policy |Accountability and |Vote:|9 - 0 | |Committee: |Administrative Review | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | |Arts, Entertainment, Sports, | |6 - 0 | | |Tourism, and Internet Media | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: NoReimbursable: No SUMMARY: This bill authorizes the Department of General Services (DGS), with consent from the Department of Corrections and Rehabilitation (CDCR), to enter into a long-term lease for land AB 166 Page 2 on the grounds of the California State Prison at Folsom (CSP) for a non-state funded peace officers memorial and museum. Specifically, this bill: 1)Authorizes DGS to lease property for the museum facility-to a nonprofit entity formed specifically to implement construction and operation of the museum-for up to 50 years, with periodic review of the lease every five years. 2)Makes the lessee fully responsible for the maintenance and operation of the facility and exempts the state from any liability for facility construction, operation, improvement or maintenance. 3)Requires the lease terms to include specified circumstances under which the property would revert to the state, and authorizes DGS, under such circumstances, to charge the lessee for any costs incurred in the demolition of the facility and restoration of the property to its pre-leased condition. 4)Requires the lessee to pay all administrative costs incurred by DGS associated with the lease and any required easements. FISCAL EFFECT: 1)Minor one-time costs (less than $10,000) for DGS to develop and execute the lease, to be reimbursed by the lessee. 2)Minor annual General Fund lease revenue. COMMENTS: 1)Purpose . According to the sponsor, the Old Guard Foundation, Inc., the current museum space near the entrance to CSP Folsom is "too small of a location to adequately highlight the AB 166 Page 3 history of corrections, house important artifacts, honor the men and women who serve in the corrections profession, and dispel the negative stereotypes surrounding the corrections system." The author states that this bill is intended to facilitate an arrangement with DGS and CDCR to provide for an expansion of the current museum to a larger site on prison grounds. According to the author, the expanded facility would be built and operated with private donations and CDCR would have no role in its construction or operation once a lease is approved. CDCR reports that it has been in collaborative discussions with the sponsor regarding an expansion of the existing museum. The sponsor estimates the project will be completed in three phases at a cost of approximately $7 million. To date, the sponsor has raised about $171,000. 2)Prior Legislation. Last year, AB 1503 (Gaines) required, rather than permitted, the proposed lease between DGS, CDCR and specifically with the sponsor. AB 1503 was vetoed by the Governor with the following message: "Current law already allows the state to enter into shorter leases without specifying the lessee. Rather than forcing the state to allow a little-known, non-governmental entity to use public property for up to 50 years, I would prefer that supporters pursue the existing authority provided in statute." AB 166 is permissive and does not specify a lease with the Old Guard Foundation. Analysis Prepared by:Chuck Nicol / APPR. / (916) 319-2081 AB 166 Page 4